Why Your Auto Insurance Premium Is Affected By Where You Live?

Why Your Auto Insurance Premium Is Affected By Where You Live?

Just like love and taxes, there are things about your base auto insurance premium you just can’t control. Should you have a questionable driving record, you past tickets and accidents will factor in to your rate. The type of car you drive, whether it is a cherry red, V8 sports car or a minivan will also be something you can’t do anything about where your premium is concerned. But what most people don’t realize is that where they live affects their rates as well. There are a few factors that feed into the insurance company’s calculations, but there are a few things you can do to sway them in your favor.

Pay Lower Car Insurance Rates

Where you live most assuredly plays a significant part in how much you pay for an auto insurance premium. As a general rule, customers who reside in rural areas start with relatively lowered rates with everything else being equal besides region, and those who live in urban or heavily populated areas pay more. This formula is based on two principles: Security and driving hazards.

On the security point of view, rural areas experience lower auto crime rates in general, making it less likely a vehicle will be stolen and therefore less likely a claim will be filed. This makes the customer a lower risk for coverage, and this is translates for a rural customer to pay lower insurance rates. For insurance policy holders in urban or city environments are often located in higher theft areas and will pay a slightly higher auto insurance premium when all else is comparable.

Lowering Your Urban Auto Insurance Premium

One thing you can do to pay lower car insurance rates is to protect your car with a covered and locked garage, or to pay for a spot in a security enabled parking garage. These solutions lower the risk of theft or random damage, and give an indication to your insurance company that your policy is less of a risk.

You can also petition for a lowered rate by demonstrating a history of good driving habits in your environment, where you may have commuted for five years in heavy traffic without an accident or moving violation that prompted a claim. Some insurance companies will also lower an auto insurance premium if certain voluntary driving courses are taken, showing an education in defensive driving that might help avoid an accident.  Lastly, if you don’t drive much either, you can also reduce your car insurance premium, saving you more money.


Image credit:  TaxCredits.net  obtained from Flickr, thank you TaxCredits.net

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